Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") summarizes the expenditures of Cumberland University (the "University") under federal programs for the year ended May 31, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the University. The University receives federal awards primarily from the United States Department of Education to provide financial assistance to eligible students through direct grants and loan programs. In accordance with the Department of Education's guidelines, the University is allowed to utilize a certain percentage of the federal awards for allowable administrative expenses related to the grant, work-study and student loan programs offered to students. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
The University is responsible for the performance of certain administrative duties with respect to guaranteed loan programs. It is not necessary to determine the balance of loans outstanding to students and former students of the University under these programs for the year ended May 31, 2025 as the University has no liability for these loans; and therefore, the loans are not included in the University's financial statements.